New HVAC for under $4k? Should I be worried?

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New HVAC for under $4k? Should I be worried?

Jill Rossi
Raleigh, NC · Member since 2015 · 36 posts · 7 votes

I've gotten 3 quotes for a new 3.5 ton HVAC system to replace my old one.  One quote was $7400, one was $6500, and one was $3800.  Clearly $3800 sounds like the best deal, but is this too low to be legit? 

Thanks!

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David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
9y

@Jill Rossi,

Make sure the low bid is for a new, current technology system, not a "new old stock" system that they need to unload because it uses refrigerants which are being retired, such as R-22.

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  • Jeremy Jackson
    Real Estate Agent · Brandenburg, KY · Member since 2015 · 277 posts · 68 votes
    9y

    I had a unit completely replaced 2 yrs ago for about $4k.  It was a name brand unit and the guys that did the install were great.  I've had no issues.  My recommendation is to check the company out through reviews or anyone else that's done business with them.  Also, compare warranties between the companies.  I would also ask the company why they are priced so hi/low compared to others, just to see what they have to say.  @Jill Rossi

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  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    9y

    Depends...3.5 ton is the compressor size on the outdoor unit...so you have a gas furnace, right? How big is the house (assuming it is huge if you are putting in a 3.5 ton unit)...point is, do you need a unit that large?... 

    I am an authorized Goodman dealer and I would not sell a gas furnace (installed for the third quote)...this does not include the a/c unit, which is the expensive component in all this.

    Long story short, I would sell a furnace/compressor (entire system) 3.5 ton for closer to $10k installed...

    The $6500-7400 may be in alignment with your market...but, if the lowball price is legit, why not?...just make sure the dealer is authorized, NATE certified, and bonded and insured...and don't put down the full purchase price (not fun being robbed) Good luck! 

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  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    9y

    @Jill Rossi

    937-979-7000
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  • Rocky V.
    Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
    9y

    Just vet the low offer and get several references.  How long has he/she been in business and are they licensed and insured.  Sounds like you got a good deal.  You will be surprised at how much these larger companies charge over the smaller ma and pa companies.

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  • Bob B.
    Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    I have had 3 Goodman systems installed in the last 18 months.  The 2 gas units were $3100 and the heat pump was $3000.  I would get references and not pay until the system was installed. 

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Jill Rossi,

    Make sure the low bid is for a new, current technology system, not a "new old stock" system that they need to unload because it uses refrigerants which are being retired, such as R-22.

    2Reply
  • Account Closed
    Johnson City, TN · Member since 2014 · 586 posts · 705 votes
    9y

    I will probably get shot for this but here goes. I browsed eBay for Goodman ACs and gas furnaces. I know. Looks like a pretty big system runs no more than about $2500. I assume this is just a matter of switching out the new units for the old units. Figure maybe a thousand for labor and that brings it to $3500. Another thousand for profit and overhead and that's $4500. Suppose the eBay price is crazy cheap and the system runs twice that. That brings the total to $7000. The middle quote looks about right to me.

    1Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    9y

    @Jill Rossi,

    With the lowball, absolutely check that he is licensed, although all I can think is run for the hills from this guy!!!  We had a similar situation, where we went with the low ball HVAC guy... turns out he did the absolutely worst job possible, literately it cost us 2.5K to get it fixed, and had to get a brand new HVAC unit b/c he put in too many tons..     This guy came from a recommendation from a friend with rentals (his had issues a year after it- b/c again he put in crap)... and the guy was a top person on Angie's List.. and pushed his church affiliation--- ALL BS.   My guess is he is using stuff leftover, or that he has in his inventory that he got for cheap..   

    I would STRONGLY recommend going with the middle guy, remember..  if it's cheap, it's b/c he's cutting corners, and you'll just pay for it later.     Take my word from a messed up system,  you get what you pay for.. it's not worth your future time in appointments and stress to fix a bad HVAC.

    0Reply
  • Thomas Williamson
    Investor · atlanta , GA · Member since 2012 · 287 posts · 148 votes
    9y

    Nearly 4,000 is what I pay in Georgia for all my units.  I've had approximately 6 put in properties we were renovating in the last few years, and the cost is always around 4,000.  I'd be very concerned with cost that are much higher than 4,000.  Your market isn't much different than mine, there's no reason for a new unit to run over 4,000.  The unit cost are set from the suppliers.  The HVAC companies get to choose how much they want to charge you to install it.  That's where they make their money.  Good luck

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  • Tom W.
    Oak Ridge, NJ · Member since 2016 · 103 posts · 95 votes
    9y
    Jill Rossi A lot of folks here are giving their opinions on whether or not these prices you've received are reasonable or not. The problem is that they are just that, opinions. You haven't given any details on what type of replacement you have been quoted on. There can be huge differences in the amount of labor and material that goes into a replacement from one job to another. The cost of equipment is what it is and won't vary much from manufacturer to manufacturer but it's everything else that goes into the job that drives up cost. Purchasing an HVAC installation is not the same as simply buying an appliance. You are paying for the skills, expertise and experience of the installing contractor. If you could give more detail on what has been quoted on each of your estimates we may have a better chance to determine why you have been given such a wide range of pricing.
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  • Tim Fordham
    Ellenwood, GA · Member since 2016 · 8 posts · 3 votes
    9y
    Good advice already.....I recently replaced a 2.5 ton Goodman with a 3 ton Goodman unit. After receiving several quotes in the $6-$7k range from some of the well known installers in the area I reached out to a relative who owns a construction company to get a quote from his "license" HVAC installer. I did an apples-to-apples comparison to make sure I was getting the exact same unit as the higher quotes. He was able to install it for under $4k which is what I was expecting. I am in GA so your mileage might differ. To be honest if I did not trust and verify the work of my referral I would have moved on to a different installer but definitely would have not paid the $6-7k price tag.
    0Reply
  • Kenneth Johnson
    Real Estate Investor · Cumming, GA · Member since 2016 · 60 posts · 12 votes
    9y

    here is quote in Georgia for 2.0 Ton Carrier using existing furnace. Half of the 2 unit, 4.5 Ton Total  system. 

    Licensed and reputable local company...

    $3059.00

    AC's are approximately 12 years old. I would recommend replacement of the equipment .

    Condenser&Coil

    14/2T Up L1

    MAIN FLOOR PROPOSAL:

    Provide and Install new Carrier Comfort Series 2 ton 14 SEER air conditioner and matching all aluminum cased upflow evaporator coil. Includes removing and disposing of existing equipment and refrigerant per EPA requirements. Providing and Installing support pad for outdoor unit. Disconnecting and reconnecting existing drain line, refrigerant lines, plenums, low and high voltage as required. Flushing refrigerant lines per manufacturers recommendations, pressure test and vacuum all lines to prevent leaks and moisture. Charging refrigerant system and start-up both cooling and heating modes per manufacturers specifications. Cleaning job site and Instructing owner on operation of new

    equipment. AC= 24ACC424A003 Coil =

    CNPVP2414ALA or C24A142L109W (L1).....

    @Tim Fordham nice to meet you yesterday at the meeting. Cool to come across you here. 

    Kenneth 

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  • Kalimah Jenkins
    Investor · Marietta, GA · Member since 2014 · 226 posts · 97 votes
    9y
    Jill Rossi I have replaced several units (both furnace and condensor). I don't pay more than $3,000-$3,500. Replacing one tomorrow -- 3.5 Ton and furnace for $2900. It can absolutely be done with a legitimate company. It also depends on whether they are quoting Trane's for example or Goodman's.
    0Reply
  • Max Maxwell
    Winston Salem, NC · Member since 2016 · 49 posts · 9 votes
    9y
    That's what I pay in NC all the time.
    0Reply
  • Patrick L.
    Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    9y

    I usually pay under $3k for a full change out from a licensed insured contractor if I go Goodman (straight cool, 2-3 ton), I'll usually pay a little extra and go for a Carrier brand like Payne.   I get a good rate because I do a lot of business but the units are cheap it's all just a matter of how much your contractor needs to make.   When dealing with HVAC make sure you're using a licensed guy and have him pull a permit so an inspector can verify the work.  

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  • Brian Mundy
    Investor · Murphy, NC · Member since 2016 · 6 posts · 2 votes
    9y

    @Jill Rossi I am a licensed HVAC contractor in Murphy NC, which is a good way away from you but closer than Ohio. haha . Feel free to private message me with the details of the estimate and I would be glad to give you an impartial opinion.

    0Reply
  • Jill Rossi
    OP
    Raleigh, NC · Member since 2015 · 36 posts · 7 votes
    9y

    Thanks everybody, that's been really helpful advice!

    1Reply
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